Q: I'm trying to plan out some equipment purchases. I know the expensing limit for business is higher than it's ever been. But isn't that figure supposed to fall way back in 2010 under the law's "sunset" provision? D.R., Vero Beach, Fla.
A: Actually, you have less time than that. The tax-law provision that quadrupled the maximumexpensing allowance from $25,000 to $100,000 was set to expire after 2005. But last year, Congress extended the $100,000 limit, plus inflation adjustments, two more years. So, the will return to $25,000 after 2007. Tip: For assets placed in service in 2005, the inflation-indexed amount for the expensing allowance is $105,000.